Charitable Remainder Trusts


Charitable remainder trusts offer flexible giving opportunities for those who wish to provide significant future funding for the benefit of the College. The donor transfers cash or appreciated assets to a trust, which provides payments for the lifetime of one or more persons or for a term of years. At the time designated by the donor, funds remaining in the trust are transferred to the St. Catherine’s College (Oxford) Foundation to benefit that which the donor chooses. Charitable remainder trusts can be designed to provide variable or fixed payments while offering donors several tax and payment benefits. Donors who prefer a fixed income may choose a charitable remainder annuity trust. The annual payout amount (at least 5 percent) for the duration of the trust is agreed upon when the trust is created.

Or donors may select variable payments that fluctuate with the earnings of the trust assets. The charitable remainder Unitrust offers annual payments equal to a percentage of the value of the trust assets as valued each year. The percentage (at least 5 percent) is determined by the donor when the trust is created.

Through a charitable remainder trust, donors can realize their philanthropic dreams while responding to immediate financial concerns. Payments from a charitable remainder trust can supplement retirement income, help defray the educational expenses for a grandchild or other family member, or augment the income of an older relative.

In all instances a remainder trust provides income to the donor or other income beneficiary for life or other permissible period and a charitable tax deduction in the year of the gift, generally it reduces estate taxes. When appreciated assets are contributed, no capital gains tax is due on the appreciated portion of the fair market value. Because no capital gains tax liability is incurred, funding a charitable remainder trust with highly appreciated real estate is especially advantageous. Payments from a charitable remainder trust may also incur relatively low taxes.

Minimum gift: $100,000